Democrats in Congress proposed introducing the digital dollar in their draft Covid-19 stimulus bill.

The draft Democrat Bill introduces the concept of a Digital Dollar, which represents either a liability of any Federal Reserve bank, or money redeemable at a bank. In the latter case, the bill introduces the concept of a pass-through digital dollar wallet, which is operated by a bank.

However, Central Banks have warned that the introduction of a digital currency would need to be done with great caution due not only to economic risks, but also cyber security risks.

Read More: Ledger Insights